Question

Bill receivable account is ______.
1. all expense account
2. a nominal account
3. a revenue expenditure account
4. a personal account

Answer 1

Correct Answer - Option 4 : a personal account

The correct answer is a Personal account.

•  Personal Account: This account is related to persons. Persons can be Natural, Artificial, or Representative.
  • ​Natural Person: e.g. Santosh's A/c, Smith's A/c, Virat's A/c, etc.
  • Artificial Person: Artificial persons like partnership firms, companies, bodies corporate, an association of persons, etc. e.g. XYZ Bank ltd, Charitable Trusts, Schools, LLP, Virat and Company ltd, etc.
  • Representative: Accounts that represent a certain person or a group directly or indirectly. e.g. Salary Payable A/c, Wages Payable A/c, Bills Receivable A/c, Bills Payable A/c, etc.​

• There are mainly three types of accounts- Personal, Real and Nominal Account.
• Real Account: These account types are related to assets or properties. They are further classified as Tangible real account and Intangible real accounts. For example: Building A/c, Machinery A/c, Cash A/c, Goodwill A/c, Trademark, etc.
• Nominal Account: These accounts types are related to income or gains and expenses or losses. For example: – Rent A/c, commission received A/c, salary A/c, wages A/c, conveyance A/c, etc.